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December 30, 2022

Debt Relief Order and Tenancy Agreement

Filed under: Uncategorized — Chris Chaten @ 7:37 PM

Debt Relief Order and Tenancy Agreement – What You Need to Know

A debt relief order (DRO) is a formal insolvency procedure for people with relatively low debts and no real assets. It is a way of dealing with debts that you cannot pay, giving you a fresh start after just 12 months. But what happens if you’re renting a property, and have a tenancy agreement in place? Here’s what you need to know.

First of all, it’s important to understand that a DRO will not affect your tenancy agreement in any way. This means that you can continue to rent your accommodation as before, without the fear of being evicted because of your financial situation. The tenancy agreement is a contract between you and your landlord, and it is not affected by your DRO.

However, your tenancy agreement may have some implications for your DRO. This is because certain types of debt cannot be included in a DRO, such as rent arrears. If you owe rent to your landlord, this debt will not be written off as part of your DRO, and you will still be responsible for paying it. This means that you will need to continue to pay your rent as normal, even if you have been granted a DRO.

It’s also worth mentioning that you will need to include any rent arrears in your DRO application, even though they will not be written off. This is because your DRO practitioner needs to have a complete picture of your financial situation, so they can assess your eligibility for a DRO.

If you are struggling to keep up with your rent payments, it’s important to speak to your landlord as soon as possible. They may be able to offer you some flexibility, such as a temporary reduction in rent, or a payment plan to help you catch up on your arrears. It’s always best to be honest about your situation, as your landlord may be more willing to help you if you are upfront and transparent.

In summary, a DRO will not affect your tenancy agreement, but it may have implications for your rent arrears. It’s important to include any rent arrears in your DRO application, and to speak to your landlord if you are struggling to keep up with your rent payments. With the right support and advice, it’s possible to manage your debts and your tenancy agreement successfully.

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